Car Rental Glossary

Car rental can sometimes be a little confusing with lots of phrases being thrown around. To help you out, we have put together a glossary which will hopefully help with your next car rental booking.

Additional Driver: Additional to the main driver, registered and listed on the Rental Agreement. May be an extra charge for an additional driver, depending on the supplier.

Additional Liability Insurance (ALI): Provides additional protection for bodily injury or death plus property damage.

Airport Fee: Charge applied by airport authorities for terminal and off terminal locations. In most cases, this charge is also applied to additional charges, such as one way fees, fuel option, child seat rental etc which are not included in the daily rate and are paid at the counter.

Collision Damage Waiver (CDW): Covers the rental vehicle in the event of accidental damage to the rental vehicle other than by theft or attempted theft. An excess usually applies and the amount will vary depending on the pick up country and/or vehicle type.

Excess Reduction (ER): Optional charge offered by the car rental company to reduce or waive the insurance excess in the event of an insurance claim against damage or theft.

Gazetted Roads: A sealed or unsealed road regularly maintained by a local, state or government body or council.

Insurance Excess: The amount the client is responsible for in the event the rental vehicle is damaged (whether the driver is at fault or not) or stolen.

Loss Damage Waiver (LDW): Covers the rental vehicle in the event of accidental damage and theft. An excess usually applies and the amount will vary depending on the pick up country and/or vehicle type.

One Way Fee: This fee is imposed to cover the costs of returning the vehicle back to the originating location. In Australia & USA, charges may apply between cities within the same State and renting between States. Some countries charge for one way fees between airport and downtown locations within the same city.

Personal Accident Insurance (PAI): Covers the driver and additional passengers of the rental vehicle for personal and physical injuries incurred in an accident.

Premium Location Surcharge/Location Service Charge: Charge applied by car rental companies at selected downtown and railway locations. This additional item also includes the Airport Fee. In most cases, this charge is also applied to additional charges, such as one way fees, fuel option, child seat rental etc which are not included in the daily rate and are paid at the counter.

Rental Period: Your car rental period starts when you pick up the rental car and ends when you drop it off.  Rental periods are based on 24 hours periods from the time of pick up – so, for example, from 9am on a Friday to 9am the following day is charged as a one day rental.

Sealed Road: A road sealed with a hard material such as tar, bitumen or concrete.

Security Deposit: Amount frozen on the client’s credit card at time of collection. The amount frozen is usually the full insurance excess amount. However, if an insurance excess is not applicable or the full excess is not frozen then an amount may still be frozen for incidentals such as fuel bond, optional charges, loss of keys etc.

Senior Driver Surcharge: Surcharge payable by senior drivers over &/or between a specific age.

Theft Protection (TP): Covers the rental vehicle in the event of theft, attempted theft or vandalism. An excess usually applies and the amount will vary depending on the pick up country and/or vehicle type.

Third Party: Provides coverage against bodily injury to persons other than the driver of the rented car and property damage to anything other than the rental vehicle and contents of same.

Vehicle Licensing Fee/Vehicle Road Registration Fee: Government imposed levy for each rental car in the car provider's fleet. Charge to partially recover the vehicle registration costs.

Young Driver Surcharge: Surcharge payable by young drivers under a specific age.